Question
Printing Distributing Operating Dept 1 Operating Dept 2 Budget $150,000 $200,000 $200,000 $300,000 Pages - 400 100 150 Miles 1000 - 450 550 Q1: Hardy
Printing | Distributing | Operating Dept 1 | Operating Dept 2 | |
Budget | $150,000 | $200,000 | $200,000 | $300,000 |
Pages | - | 400 | 100 | 150 |
Miles | 1000 | - | 450 | 550 |
Q1: Hardy Inc. has two operating departments (1 and 2) and is considering renting a new machine to help automate the printing process. The normal rental for the machine is $25/hour, but for rentals that exceed 1,000 hours the rental rate drops to $22/hour.
Operating Dept 1 needs the machine for 300 hours.
Operating Dept 2 needs the machine for 900 hours.
If Hardy uses the incremental method and Operating Department 2 is the primary user, how much of the cost will be allocated to Department 1?
Q2: Hardy Inc. has two operating departments (1 and 2) and is considering renting a new machine to help automate the printing process. The normal rental for the machine is $25/hour, but for rentals that exceed 1,000 hours the rental rate drops to $22/hour.
Operating Dept 1 needs the machine for 300 hours.
Operating Dept 2 needs the machine for 900 hours.
If Hardy uses the stand alone method, how much of the cost will be allocated to Department 1?
***Answers 6900 and 7350 are incorrect for number 1 and 2.
**multiple cheggs have gotten this wrong with those answers pleases dont answer it if you get the same, thank you.
we will all upvote it!
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